Housing affordability strongest since late 2015 as price growth slows, says Halifax

A slowdown in house price growth has put affordability at its highest level since late 2015, according to Halifax’s head of mortgages.

The bank’s house price index showed prices were broadly unchanged in November, edging up by £139 compared with the previous month, bringing the typical property price to £299,892. The flat growth rate was down slightly on the 0.5% month-on-month rise recorded in October. 

On an annual basis, growth slowed to 0.7%, which is the lowest rate since March 2024 and down from 1.9% in October. However, Amanda Bryden, head of mortgages at Halifax, said this “largely reflects the base effect of much stronger price growth this time last year”.

“This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade,” said Bryden. 

“Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.”

She said that while slower growth “may disappoint some existing homeowners”, it would be welcomed by first-time buyers.

She said affordability was at its strongest since late 2015, based on a comparison of property prices with average incomes. 

>> Read more: Home prices rise in November but annual inflation softens, says Nationwide 

“Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years,” said Bryden.

“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”